The Pilbara Minerals Ltd (ASX: PLS) share price had a top run on the market today.

Pilbara shares rose 3.28% to close at $4.09. For perspective, the S&P/ASX 200 Index (ASX: XJO) edged just 0.07% higher.

So what boosted the Pilbara Minerals share price today?

What’s going on?

Pilbara was not the only ASX lithium share to rise today. Core Lithium Ltd (ASX: CXO) shares gained 3.05%, while Allkem Ltd (ASX: AKE) shares jumped 1.82%.

The S&P/ASX 200 Materials Index (ASX: XMJ) finished the day up 1.1%.

On the New York Stock Exchange, lithium shares Sociedad Quimica y Minera de Chile (NYSE: SQM) rose 0.81% while Livent Corp (NYSE: LTHM) jumped 0.57%. The Albermarle Corporation (NYSE: ALB) share price slipped 0.32% but is up 0.26% in after-hours trade.

Lithium sentiment appeared to be strong on the ASX today. It may have been fuelled by the federal government releasing Australia’s “first Electric Vehicle (EV) Strategy” today. Lithium is a key component used in electric vehicle (EV) batteries.

Under the strategy, the government announced efficiency standards on car pollution will be introduced for new cars with the aim of pushing electric vehicle uptake.

Climate Change and Energy minister Chris Bowen said:

This strategy provides the coordination and leadership to drive down costs and improve infrastructure so that we get more affordable and accessible electric vehicles on the market.

The minister also announced $70 million in funding for new EV charging stations in Australia. The funding will be available to businesses, local government, councils, and state and territory-owned corporations.

Currently, Australia’s EV sales are “four times lower than the global average”.

Also today, the price of lithium fell lower. Lithium carbonate (99.5% battery grade) on the Shanghai Metals market has fallen 3.23% to US$26,189.06.

Conversely, Pilbara shares have risen 8% over the past two days. On Tuesday, UBS upgraded the company’s shares to a “buy” with a $4.60 price target. UBS is optimistic lithium prices can rise in the long term, despite a short-term drop in demand.

Share price snapshot

Pilbara Minerals shares have lifted more than 40% in the last year. In the past month alone, the Pilbara share price has gained 11%.

Pilbara Minerals has a market capitalisation of about $12.3 billion based on the latest share price.

The post Why did Pilbara Minerals shares charge higher today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy today
• Why AMP, EML, Pilbara Minerals, and Telix shares are racing higher today
• Capital deities and destroyers: The best and worst at putting money to work among ASX 200 shares
• Here’s the latest forecast for ASX 200 lithium stocks from UBS

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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